Amends existing law to revise provisions regarding dividends and other distributions.

This legislation is intended to bring Idaho Code 41-3812 into closer alignment with the majority of states in the calculation for determining whether a dividend or distribution by a domestic insurer within an insurance holding company system is extraordinary or nonextraordinary. The notice and approval requirements vary depending on whether a dividend or distribution is deemed extraordinary or nonextraordinary. The legislation will allow a domestic insurer to declare a nonextraordinary dividend if the dividend does not exceed the greater of 10% of surplus or the operating income for the preceding year, while providing appropriate levels of Department of Insurance oversight.